Business Law I: Exam #3 Study Guide
Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have
an express contract
Raj defends against a breach-of-contract suit by Student Loan Corporation by claiming that their deal—a student loan—was unfair because the consideration for the contract was inadequate. With respect to Raj's defense, the court will most likely rule in favor of the lender on the ground that
none of the choices
fagin and gretel agree to hijack a truck carrying a load of almonds. if fagin later refuses to go through with the crime, gretel can
none of the choices
owen, the owner of parts company, pays quint to obtain a competitiors design patent. quint keeps the money but does not deliver. owen can
none of these choices
Sean promises to pay his personal assistant Terry $50,000 in consideration of the services she provided over the years. Sean never makes the payment. Sean's promise is
not enforceable because consideration is in the past
Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can
not recover the balance
carlos and david contract for the sale of five hundred head of carlos cattle for $195 per head. unknown to either party, an unforseen storm has struck the herd and many of the cattle have died. david is
not required to pay due to the bilateral mistake
Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely
reform the covenant
ned threats physical harm to force omar to pay for "protecting" omars restaurant, pasta plates, from vandalism. most likely, omar may
rescind the contract or refuse to comply with its term
Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of
the agetns fraudulent misrepresentation
floyd, a minor, misrepresents his age when entering into a contract to buy a car from gas hogs inc. floyd takes possession of the car, but makes no payments on the contract and tries to disaffirm it. most likely, gas hogs can recover
the balance due on the contract
rex contracts with spicy pizza to deliver its products. after the deal has been partially performed, both parties inform each other that they would like to cancel the contract. rex and spicy may rescind
their contract to the extent that it is executory
Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is
undue influence
Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely
undue influence
a contract to do something that is prohibited by statute is
unenforceable
apps inc promises to give stock options to belden, a creative coder, for processes he has already designed. the promise is
unenforceable
Onsite Restoration Inc. begins renovating houses for Property Company under a contract for a stated amount per house. After six months, Onsite demands an extra $20,000 per house, stating no reason for the extra $20,000, but asserting that it will stop work if it is not paid. The agreement is
unenforceable due to the preexisting duty rule
Oscar owns Payroll Company, a bookkeeping service. Oscar pays Remy $5,000 to steal a list of a competitor's clients, to whom Oscar will aggressively market Payroll's services. This deal is
void
Analytics LLC processes misinterpreted data furnished by Botch Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of
a bilateral mistake
Allen promises to pay Barb, his niece, $5,000 if she obtains her degree at City University, where she is in her third year. Barb graduates. Allen must pay barb because
barb obtained a degree at city
county title company processes information furnished by others to transfer title to real estate from dale to ezra. The furnished information is mistaken. the contract between dale and ezra may be rescinded
because the mistake is about a meterial fact
A misunderstanding concerning a basic assumption on which a contract is made will support the recission of the deal if the mistake is
bilteral
Saul claims that his agreement with Teri for saxophone lessons is voidable. If this contract is avoided, both parties
both parties are released from it
quint enters into a contract to buy a quarter horse from rancho mirage. quint can disaffirm the contract
by words or conduct
darien, a minor, wants to disaffirm a contract that he entered into with echo, a cell service company. the law in dariens state, as in all states, permits minors to disaffirm
executory and fully executed contracts
al induces beth to enter into a contract for her purchase of a chefs burger restaurant. al knowlingly misrepresents a number of material features about the restaurant and the business. when beth discovers the truth, she can rescind the contract on the basis of
fraudulent misrepresentation
luc, a vehicle dealer, offers to sell may a truck and trailer, which luc claims can haul a certain weight. he knows nothing about the capability of the truck, but it is not as he asserts. may buys the truck. on learning the truth, she confronts luc, who says he was not trying to fool her - he was only trying to make a sale. this is
fraudulent misrepresentation
Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is
illusory
Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely
invalid because of the unreasonable terms of area and time
Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump
is the consideration that creates kims obligation to pay leo
Kris buys Liz's house for $300,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kris's consideration
legally sufficient
van a minor wants to return a set of skis that he bought from winter sports. he used and wrecked the skis, in a state in which a duty of restitution is imposed, van most likely
must return the skis and pay for the damage